Thornburg Limited Term U.S. Government Fund
Listed below is a month-by-month percentage breakdown of sources of interest income earned by Thornburg Limited Term U.S. Government Fund (the “Fund”) in 2008. Pension fund and IRA accounts should have no federal or state taxes due on these distributions. For accounts that are subject to federal income taxes on their income from the Fund, some states and/or localities do not require you to pay state or local in-come tax on income derived from certain federal agency bonds. Please consult your tax advisor as to the extent and effect of such tax treatment in your state of residence.
The Fund did not declare capital gains distributions in 2008.
DIRECT U.S. OBLIGATIONS
| Jan | Feb | Mar | Apr | May | June | July | Aug | Sep | Oct | Nov | Dec | Avg 08 | |
| U.S. Treasury | 35.86% | 33.08% | 33.76% | 29.90% | 28.98% | 27.62% | 27.69% | 25.69% | 23.87% | 28.78% | 35.64% | 33.77% | 30.39% |
| Federal Home Loan Bank |
10.48% | 7.32% | 6.06% | 7.96% | 8.97% | 7.43% | 8.32% | 6.08% | 6.09% | 3.84% | 3.76% | 4.74% | 6.75% |
| Federal Farm Credit Banks |
2.28% | 2.26% | 2.14% | 2.13% | 2.04% | 2.08% | 1.91% | 1.16% | 0.74% | 0.94% | 0.91% | 0.83% | 1.62% |
| Tennessee Valley Authority |
2.17% | 2.07% | 2.05% | 2.00% | 1.96% | 1.95% | 1.87% | 1.75% | 1.71% | 1.46% | 1.29% | 1.29% | 1.80% |
| Sub-total | 50.79% | 44.73% | 44.01% | 41.99% | 41.95% | 39.08% | 39.79% | 34.68% | 32.41% | 35.02% | 41.61% | 40.63% | 40.56% |
INDIRECT U.S. OBLIGATIONS
| Jan | Feb | Mar | Apr | May | June | July | Aug | Sep | Oct | Nov | Dec | Avg 08 | |
| Federal Home Loan Mortgage Corporation |
21.40% | 26.11% | 27.06% | 30.24% | 31.00% | 33.62% | 33.97% | 42.26% | 41.09% | 39.75% | 36.18% | 39.20% | 33.49% |
| Federal National Mortgage Association |
20.35% | 22.00% | 21.94% | 20.97% | 20.48% | 20.78% | 20.00% | 17.75% | 19.30% | 19.17% | 16.82% | 14.91% | 19.54% |
| Government National Mortgage Association |
0.48% | 0.43% | 0.40% | 0.36% | 0.32% | 0.30% | 0.26% | 0.22% | 0.20% | 0.17% | 0.14% | 0.13% | 0.28% |
| Other Government Agencies |
6.98% | 6.73% | 6.60% | 6.45% | 6.25% | 6.22% | 5.97% | 5.09% | 7.01% | 5.89% | 5.26% | 5.13% | 6.13% |
| Sub-total | 49.21% | 55.27% | 55.99% | 58.01% | 58.05% | 60.92% | 60.21% | 65.32% | 67.59% | 64.98% | 58.39% | 59.37% | 59.44% |
| Total | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% |
Tax Rules are complex. Please consult your tax advisor.
Investments in the Funds carry risks, including possible loss of principal. Bond funds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds. The principal value of a bond will fluctuate relative to changes in interest rates, decreasing when interest rates rise. Unlike bonds, bond funds have ongoing fees and expenses. Funds invested in mortgage backed securities may bear additional risk. Investments in the Funds are not FDIC insured, nor are they deposits of or guaranteed by a bank or any other entity.
Before investing, carefully consider the Fund’s investment goals, risks, charges, and expenses. For a prospectus containing this and other information, contact your financial advisor or visit our literature library. Read it carefully before investing.
